True Cost of a New Car

Posted on by Defensive Driving | in Defensive Driving Tips

Some call it overwhelming, some exciting, but truth be told there is nothing like shopping for a new car. That is until you get to the car lot and get a real idea of the wide range of choices. Let’s consider the true cost of a new car.

Buying a new vehicle

Sticker Shock — It’s Negotiable 
The manufacturer suggested retail price (MSRP) is listed on every new vehicle’s window along with pricing quotes for each bell and whistle. The MSRP is simply the car manufacturer’s suggestion of sale price. In some cases, with negotiation, you can get a lower price. It is reflective of the costs put into the manufacturing of the car. Want to calculate the retail price of the car you’re interested in for a leg up in the negotiation process? There are too many hidden fees to truly get an exact cost. However considering Invoice price, Holdback and Factory-to-dealer incentives you can get a better idea of the cost to the dealer.

Ask for a copy of the dealer invoice. Off the bat ignore the destination fee since it is not an arbitrary mark up. Dealer hold back or hidden profit is on average 1-3% of the MSRP listing. On a $30,00 car the Holdback is $900. It is important that you understand that if you bought the car at invoice pricing that cost would be covered by the manufacturer to the dealer.

If you take the dealer incentive, holdback profit from the invoice pricing you will have the true cost to the dealer. It won’t be easy but in any case happy negotiating.

Ownership Costs – Definite Costs 
Owning a car has much more to do with purchasing it. The purchasing is the easy part. When buying a new car people seldom think of costs that are hard wired into ownership. Costs like:

1. The length and cost of your loan,

2. How many miles you expect to drive per year (which contributes to normal wear and tear),

3. Whether you are financing or leasing,

4. How your credit score affects your overall price,

5. How much of a down payment you have

6. Taxes and fees

7. The cost of automobile insurance

8. Maintenance costs (These vary based on vehicle upkeep, miles traveled, accidents and incidents, etc.)

9. Fuel costs (vary with market trends)

 

|

Customer Reviews

Defensivedriving.com has a ShopperApproved rating of 4.7 based on 98466 ratings and reviews.

Siebrigje TX, United States
The experience was great, easy, and very professional.
Coleman United States
Easy to navigate website
Stratton
quick and easy sign up!
Sarahi
Very fast
Nestor
Quick
Ivan United States
Fast and easy.
Aaron TX, United States
It has been very easy.
mario TX, United States
Cheap, easy, and informative. Look no further.
James
Easy to register. Easy to follow.
Jennifer United States
Very easy and fast!
Abelardo TX, United States
Great, fast & reliable!
kaylin United States
It was great, fast, and easy.
Patricia
Easy to use and register!
Wendy TX, United States
The process was easy and efficient.
Courtney United States
Very easy lesson while in the comfort of my home.
Brittany United States
Overall great.
Stephen TX, United States
It was pretty easy, very user friendly, and an overall simple experience.
Willie TX, United States
Fast and easy
Michael
Nice and easy
Natali TX, United States
user friendly
C.T. TX, United States
Fast and easy to use. Good program.
Emma TX, United States
It was easy to understand and complete.
Chad
Smooth sailing introductory process. Love the website.
Hugo TX, United States
Easy to navigate.
Armando
Good website very easy to use
Broderick TX, United States
It was fast and easy
Randy United States
Great experience
Peter United States
Quick, easy, and painless
Victor
Excellent
Taylor
Easy!
Victoria
Awesome
See all reviews on shopperApproved.com
Why DefensiveDriving.com
  • 20 Years in Business
  • Over 2 Million Customers Served
  • Highest Possible Better Business Bureau Rating
  • Award Winning Course